Manufacturing 2.0
Rock River Valley manufacturing experts discuss the many facets of manufacturing: technology, education, training, events, people and any other aspects of this important segment of our economy. They’ll use this blog to get the word out and solicit feedback on local and global manufacturing. They hope to better engage our employers, employees and our future work force and increase their understanding of manufacturing.

Export to China-Update #5

July 28th, 2008 at 01:40pm Bob Trojan

After several weeks of e-negotiating with my contact in Shanghai, it looks like I will have an agent there covering 6 eastern provinces of China.  We e-discussed drawings, payment terms, shipping arrangements, target industries and target sales volumes.  I will be sending him a DVD with all pertinent information so that his 8 sales people can go after new business for my company.

This process started with my attendance at the “Go Global” seminar in May, followed by my working through the State of Illinois Trade Office.  They were helpful in putting me in contact with my new agent and lent advice along the way.  This is a good example of our state tax dollars at work!

I will conclude this series now and I hope these Export posts will be helpful to others who want to penetrate a new market like China.

Entry Filed under: Export

2 Comments Add your own

  • 1. redrover  |  July 28th, 2008 at 2:23 pm

    Mr. Trojan,

    What precautions have you taken to make it more difficult for your Chinese contacts to counterfeit, imitate, reverse engineer or otherwise steal the ideas that are behind the product you are trying to sell them and manufacture it themselves?

    An interesting paper on this topic can be found here:

    Counterfeit, imitation, reverse engineering and learning: reflections from Chinese manufacturing firms
    by Tetsuya Jr. Minagawa , Paul Trott and Andreas Hoecht
    R&D Management
    Volume 37 Issue 5, Pages 455 - 467
    November 2007
    http://www3.interscience.wiley.com/cgi-bin/fulltext/118510639/HTMLSTART

  • 2. Bob Trojan  |  July 28th, 2008 at 4:05 pm

    redrover;
    Thanks for the feedback and articles. The nature of my product is such that, while governed by industry standardization of specifications, it is relatively easy to copy the design. The big advantage that we have is that our volumes are low and speed to market is a requirement. Our industry doesn’t face direct import competition for those two reasons. Going into China or other countries for that matter, is plus business for us. They could contract with any number of other competitors, so we’ve chosen to put ourselves in front.

    I think it would be very difficult for them, or anyone, competing against us by importing into the US based on the volume and speed issues and customer closeness.

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